I suppose the interest rate for a 1-year 1000 treasury bond


I. Suppose the interest rate for a 1-year $1000 Treasury bond is 1%.
a. What will be the price and yield for a 1-year BB-rated corporate bond if the probability of default is 6 percent.
b. What is the yield spread between the two bonds.

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Microeconomics: I suppose the interest rate for a 1-year 1000 treasury bond
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